Politics – Page 12 – Abnormal Capitalist

Trump Solo

Remembering my early years as a Trump appreciator :

A securities analyst who has studied Trump’s peregrinations for many years believes, “Deep down, he wants to be Madonna.” In other words, to ask how the gods could have permitted Trump’s resurrection is to mistake profound superficiality for profundity, performance art for serious drama. A prime example of superficiality at its most rewarding: the Trump International Hotel & Tower, a fifty-two-story hotel-condominium conversion of the former Gulf & Western Building, on Columbus Circle, which opened last January. The Trump name on the skyscraper belies the fact that his ownership is limited to his penthouse apartment and a stake in the hotel’s restaurant and garage, which he received as part of his development fee. During the grand-opening ceremonies, however, such details seemed not to matter as he gave this assessment: “One of the great buildings anywhere in New York, anywhere in the world.”

→ The New Yorker

The Greek Warrior

A few years ago, Varoufakis told Yorgos Avgeropoulos, a documentary filmmaker, that the difference between a debt of ten thousand euros and one of three hundred billion euros is that only the latter gives you negotiating power. And it does so only under one condition: “You must be prepared to say no.” Upon his election, Varoufakis used the less than ideal influence available to a rock climber who, roped to his companions, announces a willingness to let go. On behalf of Tsipras’s government, Varoufakis told Greece’s creditors, and the world’s media, that his country objected to the terms of its agreements. This position encouraged widespread commentary about Greece following a heedless path from “no” to default, and from default to a “Grexit” from the euro currency, which might lead to economic catastrophe in Europe and the world.

→ The New Yorker

Complacency And Incrementalism Are Traps To Avoid

Lawrence Summers :

Famously, while you can fool all of the people some of the time and some of the people all of the time, you cannot fool all of the people all of the time. In the same way, markets may well be inefficient and diverge from fundamental value, and they may well be subject to government manipulation for significant intervals, but it is a foolish government that supposes it can indefinitely maintain speculative prices at politically convenient levels, as the Chinese authorities may soon discover.

→ Financial Times

Thomas Piketty : “Germany Has Never Repaid.”

ZEIT: So you’re telling us that the German Wirtschaftswunder [“economic miracle”] was based on the same kind of debt relief that we deny Greece today?

Piketty: Exactly. After the war ended in 1945, Germany’s debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece. Instead, both of our states employed the second method with the three components that I mentioned, including debt relief. Think about the London Debt Agreement of 1953, where 60% of German foreign debt was cancelled and its internal debts were restructured.

→ Medium

A Finance Minister Fit for a Greek Tragedy?

At home, “V Is for Varoufakis” posters hung in the windows of cafes. Greeks showered him with love, twittered over his looks, and wrote adoring satires of his glamorous life and wide-ranging talents. Varoufakis’s oldest friends were bewildered by the international fuss, but everyone I’ve spoken to who knew him before this ministerial turn says Varoufakis’s behavior on the European stage is typical: He’s outspoken, passionate and confident about his ideas. That, apparently, was the problem, because Varoufakis did not go to Europe merely to negotiate Greece’s future. He had bigger ideas. He wanted to show the Europeans how to save Europe itself.

→ The New York Times Magazine